Federal Budget 2018 Initiatives: Superannuation

3 Year Audit cycle for some SMSF

Some SMSFs will be allowed to move from an annual to a three-yearly audit cycle if they have:

Three consecutive years of clear audit reports; and

Lodged the fund’s annual returns in a timely manner

SMSF Membership increasing to a maximum of six

Effective 1 July 2019

The SIS Act will be updated to enable the number of fund members in new and existing Self-Managed Superannuation Funds (SMSFs) to increase from a maximum of four to six.

Super exit fees banned

Effective 1 July 2019

Effective 1 July 2019, A ban will be placed on all exit fees on superannuation account in addition to a 3% annual cap on passive fees charged by superannuation funds on accounts with balanced below $6,000.

“Opt In” for insurance in superannuation

Effective 1 July 2019

Insurance in superannuation will change from a default framework to an ‘Opt In’ basis for those:

With balances less than $6,000

Under the age of 25 years

Whose accounts have not received a contribution in 13 months

The proposal has been designed to protect the retirement savings of young Australians. Impacted members will need to decide whether they will opt-in to the existing cover or allow it to switch-off.

This article is published by Modoras Pty Ltd ABN 86 068 034 908 AFS and Credit License No. 233209. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). While every effort is made to ensure that the information is accurate, users must be aware that some information may not be accurate or is no longer current. No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.

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